Your Favourite Currency Pairs

[alan5616]

For a year, I was trading GBP/JPY, every day, and found it to be the trading equivalent of a roller coaster ride. One of the difficulties with trading volatility is that you pay for it in the spread that you're offered.

Recently, I've changed tacks from trading GBP/JPY and now prefer to trade EUR/JPY and GBP/USD. When trading £/Y, I was paying a minimum 6pts to a max of 14pts in spread. Now, I'm, usually, quoted an average of 3pts on E/Y and 2pts on £/$. I make 2-3 trades every day and the saving, over a year, should be substantial.

I'd like to get input from members, who regularly trade the FX markets, as to their favourite pair to trade and why. Also, whether you've switched from trading one currency pair to another perhaps, due to changing market conditions or to reduce the cost of the spread.

 

[Trader333]

At 14 points you would have saved a fortune using DMA. Were you profitable when the spread was this high and if so what was the basis for your strategy ?


Paul

 

[squall321]

eurusd
gbpusd
gbpjpy

some pairs are too slow and don't pay up enough (usdjpy) for me and some are just TOO WEIRD (usdchf)

who is caring about the gj spread, on gj you're immediatly 20 pips in profit as soon as you enter anyway

 

[alan5616]

At 14 points you would have saved a fortune using DMA. Were you profitable when the spread was this high and if so what was the basis for your strategy ?


Paul

The 14 pts. was the exception but, the normal average spread was 8-10 pts. I was profitable but, because of the high volatility, had to place the stop loss anything from 60-100 pts away, even on a 5 min chart.

The basis of the strategy was just trading price action. At the latter part of 2008, the ADR, on £/Y, went from it's previous 180 to over 400. Since March, moves have been much less extreme and the ADR has returned to nearer it's previous level. Hence, my decision to trade a pair with a tighter spread.

 

[alan5616]

eurusd
gbpusd
gbpjpy

some pairs are too slow and don't pay up enough (usdjpy) for me and some are just TOO WEIRD (usdchf)

who is caring about the gj spread, on gj you're immediatly 20 pips in profit as soon as you enter anyway

I totally agree with your view of $/Y. I find the AUD/USD weirder than the USD/CHF.

Can you explain what you mean in the 2nd para? I've never found myself 20 pips in profit immediately, except when I've caught the run in full flow. I'm day trading so, receive no benefit from interest rate differential.

 

[squall321]

I totally agree with your view of $/Y. I find the AUD/USD weirder than the USD/CHF.

Can you explain what you mean in the 2nd para? I've never found myself 20 pips in profit immediately, except when I've caught the run in full flow. I'm day trading so, receive no benefit from interest rate differential.

depends where you enter. but i know that if i have to wait for a trade to come good on gj, i've entered too early.

 

[arabmall_ahmed]

thank you for this topic this topic is very nice

 

[alan5616]

depends where you enter. but i know that if i have to wait for a trade to come good on gj, i've entered too early.

That doesn't say too much. Your statement of a 20 pip profit, almost immediately, is, in all honesty, a red herring. My method of entry was to be convinced that I was looking at the right direction of the market move and then watch the tape. The £/Y is a great market to tape watch (or, rather, it was).

 

[squall321]

That doesn't say too much. Your statement of a 20 pip profit, almost immediately, is, in all honesty, a red herring. My method of entry was to be convinced that I was looking at the right direction of the market move and then watch the tape. The £/Y is a great market to tape watch (or, rather, it was).

i'm just telling it as i see it

 

[Claudia123]

GBP/USD is my favourite of the moment - second is Swissie why you guys say its weird?? I accept it does some strange things but when she goes she goes.

 

[alan5616]

GBP/USD is my favourite of the moment - second is Swissie why you guys say its weird?? I accept it does some strange things but when she goes she goes.

Hi Claudia,

I didn't say it was weird; that was Cloud321. It's a market that I follow quite closely and think that this is a very good market to trade.

I agree with you on the £/$, which is why my main trading preferences, at present, are £/$ and E/Y.

 

[Claudia123]

Hi Claudia,

I didn't say it was weird; that was Cloud321. It's a market that I follow quite closely and think that this is a very good market to trade.

I agree with you on the £/$, which is why my main trading preferences, at present, are £/$ and E/Y.

Hi

Will have a look at E/Y that's one I never traded. Play with EUR/USD now and again when bored.

Have a good weekend all.

 

[fayalac]

USD/JPY spread is not high so you can easily profit, anyway, at any pair you can trade at many times it would be as a roller coaster. I basically support my desitions on price action but i am always aware that a hit can come from anywhere, and at any sense, so do your homework Alan and read each economic newspaper you can find and all related articles you can find at the web, i recomend you fxstreet.com you will find a lot of information to support your desitions, just be aware that these guys - as anyone in the world - can be wrong sometimes.

 

[Claudia123]

USD/JPY spread is not high so you can easily profit, anyway, at any pair you can trade at many times it would be as a roller coaster. I basically support my desitions on price action but i am always aware that a hit can come from anywhere, and at any sense, so do your homework Alan and read each economic newspaper you can find and all related articles you can find at the web, i recomend you fxstreet.com you will find a lot of information to support your desitions, just be aware that these guys - as anyone in the world - can be wrong sometimes.

Are you serious?? Read newspapers and internet sites for your trading? By the time you have read them the world has changed. Look to tomorrow not yesterday.

 

[fayalac]

Yes Claudia, i read the past and the present is at the web, that was why internet was created for, for us!

Are you serious?? Read newspapers and internet sites for your trading? By the time you have read them the world has changed. Look to tomorrow not yesterday.

 

[alan5616]

USD/JPY spread is not high so you can easily profit, anyway, at any pair you can trade at many times it would be as a roller coaster. I basically support my desitions on price action but i am always aware that a hit can come from anywhere, and at any sense, so do your homework Alan and read each economic newspaper you can find and all related articles you can find at the web, i recomend you fxstreet.com you will find a lot of information to support your desitions, just be aware that these guys - as anyone in the world - can be wrong sometimes.

At the bottom of my list of markets is USD/JPY. I don't trade it and don't follow it anymore. You need such big moves in order to make a small profit.

Fayalac, I 've been trading for 10 years and think that I've done my homework by now. I have developed a strategy which produces constant profits every week. I couldn't give a toss what fxstreet, FT etc. says about currency market direction. They're wrong, much of the time, anyway. I'm at my desk by 06.30 every morning and spend 30 mins going over potential trade setups in preparation for the "hot dog" session to open,

The only media input I have is Bloomberg TV, not for making trading decisions per se but, as an early warning system in the event of a serious global incident.

 

[fayalac]

I´m sorry if you missunderstood my coment i am not trying to be rude or unpolite, i am sure you´ve made your homework. As for these guys i was only trying to be polite with them, but you´re rigth, most of the times they are wrong. That is the same i do, i start about 6:30 am just watching the markets behavior and graphics about what happened overnigth, check on cnn´s site looking for any potentially important event and only then i start trading. I feel comfortable with these pair, i find it highly predictable and my strategy produces from a small to a very good profit each day, it works for me, sometimes all i do is to prepare my strategy for tomorrow or i simply decide to make it overnigth, anyway a small profit for me is 0.8% a day, its not bad at all, as an average my strategy produces any from 2.5% to 8% a day, except when i make my mistakes then i can loose some bucks but my strategy doesnt let me loose a lot.
Again alan, if you missunderstood my words i offer you an apologyze.

At the bottom of my list of markets is USD/JPY. I don't trade it and don't follow it anymore. You need such big moves in order to make a small profit.

Fayalac, I 've been trading for 10 years and think that I've done my homework by now. I have developed a strategy which produces constant profits every week. I couldn't give a toss what fxstreet, FT etc. says about currency market direction. They're wrong, much of the time, anyway. I'm at my desk by 06.30 every morning and spend 30 mins going over potential trade setups in preparation for the "hot dog" session to open,

The only media input I have is Bloomberg TV, not for making trading decisions per se but, as an early warning system in the event of a serious global incident.

 

[alan5616]

I´m sorry if you missunderstood my coment i am not trying to be rude or unpolite, i am sure you´ve made your homework. As for these guys i was only trying to be polite with them, but you´re rigth, most of the times they are wrong. That is the same i do, i start about 6:30 am just watching the markets behavior and graphics about what happened overnigth, check on cnn´s site looking for any potentially important event and only then i start trading. I feel comfortable with these pair, i find it highly predictable and my strategy produces from a small to a very good profit each day, it works for me, sometimes all i do is to prepare my strategy for tomorrow or i simply decide to make it overnigth, anyway a small profit for me is 0.8% a day, its not bad at all, as an average my strategy produces any from 2.5% to 8% a day, except when i make my mistakes then i can loose some bucks but my strategy doesnt let me loose a lot.
Again alan, if you missunderstood my words i offer you an apologyze.

Thanks for that, Fayalac. Apology accepted. It did seem as though you were treating me like a newbie.

We are both in agreement that the strategy is the most important element in producing profits from Fx trading, not listening to forecasts and opinions on websites and other media. These so-called "experts" are, by and large, a waste of time. They're, mostly, overpaid and over rated. People like this managed to lose 50% of my private pension fund last year.

 

[NVP]

Hey alan !

For a year, I was trading GBP/JPY, every day, and found it to be the trading equivalent of a roller coaster ride. One of the difficulties with trading volatility is that you pay for it in the spread that you're offered.

Recently, I've changed tacks from trading GBP/JPY and now prefer to trade EUR/JPY and GBP/USD. When trading £/Y, I was paying a minimum 6pts to a max of 14pts in spread. Now, I'm, usually, quoted an average of 3pts on E/Y and 2pts on £/$. I make 2-3 trades every day and the saving, over a year, should be substantial.

I'd like to get input from members, who regularly trade the FX markets, as to their favourite pair to trade and why. Also, whether you've switched from trading one currency pair to another perhaps, due to changing market conditions or to reduce the cost of the spread.

hey mate............couldnt resist a quick peek here although I should be workin hard :whistling

As You know that explosive combo absolutely flies due to the opposite correlations and high volatility levels........trade wider stops and if it comes good you will get more bang for your buck than any other combo.....

N

 

[apmf]

For a year, I was trading GBP/JPY, every day, and found it to be the trading equivalent of a roller coaster ride. One of the difficulties with trading volatility is that you pay for it in the spread that you're offered.

Recently, I've changed tacks from trading GBP/JPY and now prefer to trade EUR/JPY and GBP/USD. When trading £/Y, I was paying a minimum 6pts to a max of 14pts in spread. Now, I'm, usually, quoted an average of 3pts on E/Y and 2pts on £/$. I make 2-3 trades every day and the saving, over a year, should be substantial.

I'd like to get input from members, who regularly trade the FX markets, as to their favourite pair to trade and why. Also, whether you've switched from trading one currency pair to another perhaps, due to changing market conditions or to reduce the cost of the spread.

One of our former banned member named `WASP´use to trade just G/Y pair nothing else. He claims to keep his risk to a maximum of 3 times his DMA spread. Here is the link.. http://www.trade2win.com/boards/forex-discussion/54114-trading-price-wasp-stylee-4.html
I dont know how exactly he did it but what I can assume is it could be done.

On the other hand I have being trading GBP/YEN for a while now and I dont see any point not trading this pair, Ok I dont spread bet only DMA and usually its very volatile but Daily ATR is also good.